35 Sneaky ways to improve your finances
“Money can’t buy happiness, but it can buy you the kind of misery you prefer.”
- Author Unknown
It’s definitely a good thing if you’re looking at an article about improving your finances. You’re either trying to pay off debt, or looking for better ways to invest. Both happen to be very productive activities. During the course of my winter break from school and holiday season, where I deviated from my regular schedule, I racked up a bigger credit card bill than I would have liked.
I’m certain that I’m not the only person around that was taken by immediate gratification, and I’m certain I won’t be the last. Regardless, what’s done is done, and now it’s time for us to strategically pay off the debt, and get back on the savings track.
Here are the strategies I have used for getting out of debt in the past, and the ones I’m going to employ over the next couple of months.
1. Don’t get into debt to begin with.
Right, I just told you that I didn’t do #1 this time around. So it’s not a lecture, rather than a statement of the obvious. Sticking to the budget, and saving up for large purchases is a much more effective way of being a consumer.
2. Pay yourself first.
If you’re in debt and worried about the creditors it’s easy to forget to do this. However, it’s important to remember to put in at least 10% of our income into savings. Truth is, if you have been doing this all along, you might have had a savings account that will take care of that holiday spending without incurring interest on the credit cards.
3. Make extra debt payments.
Mortgages and other debts tend to accumulate thousands of dollars in interest debt. By making extra payments each month toward our dept we will be able to eliminate some of the interest and save in the long run.
4. Live beneath your means.
Consider that you don’t need the engine upgrade on your car, an extra bedroom in the house you aren’t using, or the latest ipod when you already have one. There are certainly endless ways to cut costs, and what you’re cutting can be tucked away.
5. Direct deposit your earnings.
When you direct deposit your paychecks, you can mark a certain amount to be automatically transferred to a savings account. This way you aren’t tempted to spend, and you don’t have to worry about it.
6. Ignore your raise.
If you happen to get a raise at the ol’ j.o.b. ignore the difference. Instead of taking this opportunity to spend more, use the opportunity to pay off more debt, or put more into savings, while not changing your life style one bit.
7. Create a second income stream.
If you happen to have a hobby that you enjoy doing, and can monetize it at the same time, this would be the ideal way to make a secondary income. Another good way is to create an information source, such as a blog, or ebook, in which you can share your expertise, and receive a monetary compensation in return.
8. Find out where your local library is… and actually go there.
This advice is coming from a person that is in the process of ordering 62 books from a list he just made. Seriously though, I regularly use my library in order to borrow free books, and free audio CDs to listen to in my car. For someone who’s biggest passion is personal development, this adds up to a big savings.
9. Downgrade your toys.
There are many things you can downgrade that will not only save you money, but save you time as well. You can downgrade your phone plan, your cable television, your blockbuster online membership, the monthly tanning salon charge, or whatever else you aren’t using, but are getting charged for.
10. Sell what you don’t use.
Many of us having things around the house that we haven’t used in ages such as clothes, gadgets, jewelry, etc. Not only can you declutter, but you can earn some extra money by auctioning your items off on ebay, or hosting a garage sale.
11. Freelance.
If you have a skill that is in demand there are many freelancing job boards, such as craigslist, where you can pick up a client in your spare time, and make some extra money.
12. Keep a little black book.
Keep records of people who borrowed money from you, and make sure gently remind them that the money is owed to you. Might as well tie up all loose ends.
13. Request a raise.
If you’ve been putting in good work at your job, it may be time that you deserve a raise. An employer can often overlook giving you a raise if they believe that you are willing to work for what they are paying.
14. The Fundamental.
Earn more than you spend. It’s that obvious, so let’s do it!
15. Cut down on meat.
Not only is meat more expensive than vegetables per serving, but you’ll also be saving the environment in ways you might not have considered.
16. Weather-proof your home.
Insulating windows, doors, attic entrance, basement entrance, and garage doors. Keep your heat in, in the winter, and keep your cold in, in the summer. Don’t you know that it doesn’t pay to air condition the whole neighborhood?
17. Use a digital thermostat.
You can program your AC and heat to turn off while you’re away at work, and turn on right before you arrive. This way you’re still comfortable, but save when you’re not using it.
18. Trees in the yard.
If it’s climate appropriate, planting deciduous trees such as maple, oak, or elm will provide shade in the summer to save on AC, while being leafless in the winter to not block the sun.
19. Use compact fluorescent light bulbs.
…instead of regular incandescent light bulbs. According to about.com if every US household switched just one bulb, it would be equivalent to taking 7.5 million cards off the road, and save energy to light 2.5 million homes for a year. To you it means you will be saving money on electricity while saving the environment.
20. Cook at home.
By cooking all your meals at home, and bringing food with you to work, you will be eating cheaper and healthier at the same time. It’s hard to make a healthy choice when you’re out and in a hurry, but cooking yourself you know exactly what you’re using for ingredients.
21. Plan ahead.
It’s easy to overlook periodical and seasonal expenses when formulating your budget. Think about the holiday shopping, important birthdays, car maintenance, and school supplies that you may need in the future. Put extra money in your budget for these things so you don’t deviate later.
22. Figure out your debt.
Take a sheet of paper and identify where you owe debt to. Use this information to formulate a pay-back strategy.
23. Highest interest first.
Take the highest interest debts that you owe and pay those first. You’ll end up saving a potentially significant amount of money.
24. A necessity list.
When you’re craving for the latest fashion accessory or gizmo that isn’t necessary to your immediate survival, write it down on your list. After a month has passed, see if the urge to get it has subsided. Chances are this is something you could do without and would be bored with in a month anyway.
25. Join a group.
Meetup.com offers free meetup groups and seminars for just about anything. Join a finance or get out of debt group in order to surround yourself with like minded people. Maybe you’ll meet some new friends whom you can enjoy low-budget activities with instead of the ballers you hang out with now.
26. Get the last model.
Some people live impulsively and must have the latest everything. From cell phones to cars, if they’re not in the newest model they aren’t satisfied. Take advantage of the fact that items depreciate in value very quickly and buy some things used. You get something functional for a fraction of the price.
27. Shop smart.
Ebay, buy.com, bens bargains, and an array of other frugal shopping sites give you the ability to find great deals. Save hundreds of dollars by shopping around and never pay retail.
28. Bring your lunch.
Whether you have to cook ahead for the week, or make time in the evening to just cook a day ahead, bringing your own lunch is cheaper and healthier. You know you use fresh ingredients, pay super market prices, and avoid traveling to get lunch. Save $3-5 a day for lunch and that’s $1460 a year on average.
29. Change that habit.
The daily latte ($4), the pack of gum ($0.75), the super-size meal ($0.60), the late night drive-through ($7.50) – you get the point. That alone will cost you nearly $4444 a year. Think you can live without it?
30. Have a monetary goal.
What is the reason that you want to save money for? Is it for retirement, an exciting adventure, or a material item that you’re just dieing to have? When you have your goal clearly defined you feel more motivation to achieve it. You’ll feel better saving money for the big pay out instead of blowing it away on instant gratification.
31. Save your change.
Let’s say that on average you have 50 cents left in your pocket at the end of the day. If you collect that money, and use the free coin star machines at Commerce banks, you will have saved $182.5 at the end of the year.
32. Public Transportation.
Instead of owning a car, paying a lease, splurging on gas, and insurance on top of that, simply take the bus, train, subway, or ferry. You’ll save big while saving the environment.
33. Use Rich Dad’s Percentages.
60% Expenses/assets/investments. 10% Donation. 10% Long-term savings. 10% Short-term savings.
34. Keep temptation away.
Stay away from places, such as malls, where you will be tempted to spend.
35. Curb your addictions.
Every vice, such as tobacco, drugs, alcohol, porn, and junk food takes a toll on your health, wallet, and time. Eliminate the vices, and greatly improve your life.
